BILL NUMBER: S8615

SPONSOR: BENJAMIN
 
TITLE OF BILL:

An act to amend the civil practice law and rules, in relation to inter-
est to be recovered upon a sum awarded in certain circumstances

 
PURPOSE OF THE BILL:

To bring actions for personal injury in line with other actions for
purposes of computation of interest on a judgment.

 
SUMMARY OF PROVISIONS:

Section one amends the CPLR to require calculation of interest in cases
for personal injury to be measured from the date the cause of action
existed.

Section two is the effective date.

              

 
JUSTIFICATION:

This legislation would amend the CPLR to require interest on judgments
for personal injury to be measured from the date the harm occurred.
Calculating interest from such a date will result in a more equitable
outcome for those who bring an action that is decided in their favor,
often after waiting years for resolution of the matter.

The inequity in the law has a particularly pernicious effect in personal
injury cases. Under current law, a plaintiff who sues for breach of
contract, for example, receives interest from the date of the breach of
contract. However, an individual who sues for negligence causing a
broken limb recovers interest only from the date of the judgment. This
is especially unfair when one considers that lost earnings, medical
bills, and other losses are expenses that the victim incurs immediately.
Allowing interest to accrue only after the judgment for personal injury
only compounds the injury and can make it impossible for the plaintiff
to be made whole.

Breach of contract, real property, and wrongful death claims already
require judgment to be calculated from the date the cause of action
exists. It is inequitable and unfair to injured victims to treat actions
for personal injury any different.

If a plaintiff is successful in an action for personal injury, it is a
matter of fairness to allow such plaintiff to receive interest from the
original date of the injury, because that is the date when the harm
began to impact the plaintiff. Furthermore, this proposal would help to
increase efficiency in the judicial system and foster resolution of
cases pending appeal where one side anticipates the realistic outcome of
the case and appeals to extend the litigation and delay payment of a
judgment.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS FOR STATE:
None.

 
EFFECTIVE DATE:
This act shall take effect immediately.